According to the report released by E Fund Management Co., Ltd. on July 18th, as of the end of the second quarter, the top ten holdings of the E Fund Consumer Industry Fund managed by Xiao Nan and Wang Yuanchun were Guizhou Moutai (600519.SH), Midea Group (000333.SZ), Wuliangye Yibin (000858.SZ), Fuyao Glass (600660.SH), Shanxi Xinghuacun Fen Wine Factory (600809.SH), Anhui Gujing Distillery (000596.SZ), Haier Smart Home (600690.SH), Great Wall Motor (601633.SH), Luzhou Laojiao (000568.SZ), and BYD Company Limited (002594.SZ). Compared with the end of the first quarter, BYD Company Limited entered the top ten holdings, and Tsingtao Brewery (600600.SH) exited the top ten holdings.

Xiao Nan said that we need more patience to wait for quality companies to make strategic adjustments, product sorting, and organizational adjustments, further improve the quality of the enterprise, and usher in a new round of development opportunities.

BYD Company Limited entered the top ten holdings.

In terms of equity investment positions, as of the end of the second quarter, the E Fund Consumer Industry Fund's equity investment position reached 86.96%.

In terms of top holdings, as of the end of the second quarter, the top ten holdings of the E Fund Consumer Industry Fund were Guizhou Moutai, Midea Group, Wuliangye Yibin, Fuyao Glass, Shanxi Xinghuacun Fen Wine Factory, Anhui Gujing Distillery, Haier Smart Home, Great Wall Motor, Luzhou Laojiao, and BYD Company Limited. Compared with the end of the first quarter, BYD Company Limited entered the top ten holdings, and Tsingtao Brewery exited the top ten holdings.

In terms of net asset value, as of the end of the second quarter, the E Fund Consumer Industry Fund's net asset value per share was 3.408 yuan.

Xiao Nan pointed out that in the first quarter, our judgment on the rebound of the macro economy was biased, and the overall value of the combination also fell. In the second quarter, we continued to work hard to reduce the valuation level of the portfolio and increase the allocation proportion of home appliances and automotive parts, while trying to avoid categories with low profit margins and relatively rigid costs. We need more patience to wait for quality companies to make strategic adjustments, product sorting, and organizational adjustments, further improve the quality of the enterprise, and usher in a new round of development opportunities.

Increased holdings in undervalued and high dividend-paying sectors of Hong Kong stocks.

In addition, according to the second quarter report of the E Fund High Quality Select Three-Year Holding Fund managed by Xiao Nan, as of the end of the second quarter, its equity investment position reached 86.18%. The net asset value per share of the fund was 0.7740 yuan.

In terms of holdings, in the second quarter, the E Fund High Quality Select Three-Year Holding Fund managed by Xiao Nan increased its holdings in undervalued and high dividend-paying sectors of Hong Kong stocks. Its top ten holdings were Tencent (00700), Henan Shenhuo Coal & Power (000933.SZ), Weichai Power (000338.SZ), Wuliangye Yibin, Great Wall Motor (02333), Zijin Mining Group (601899.SH), Wanhua Chemical Group (600309.SH), PetroChina (00857), HSBC Holdings (00005), and XCMG Construction Machinery (000425.SZ). Among them, Tencent, Great Wall Motor, Wanhua Chemical Group, PetroChina, and HSBC Holdings were newly added positions.

Xiao Nan said that our judgment on the macro trend was biased in the second quarter, but we adjusted it quickly. We increased our holdings in undervalued and high dividend-paying sectors of Hong Kong stocks, such as the Internet, petroleum, and banks, and reduced our holdings in optional consumer sectors, which are more sensitive to the macro environment. We try to diversify income and risk sources as much as possible, work hard to balance the volatility level of the portfolio under the current macro environment, and find more excess returns.